Baidu denies report of car-unit spin-off; shares +2%

|About: Baidu, Inc. (BIDU)|By:, SA News Editor

Baidu (BIDU +2%) is denying a report that it's considering a spin-off of its autonomous vehicle business.

"The Caijing report on the so-called plan to spin off Apollo and seek external investors is untrue," Baidu says in a mailed statement.

"Baidu has no plan to spin off Apollo. Apollo is a key pillar of Baidu's AI strategy and has been making steady progress based on our strategy."

Caijing had indicated (via a source close to the company) that Baidu was seeking external investors for the project.

Meanwhile, another firm has joined in the post-earnings downgrades: Blue Lotus Capital Advisors has downgraded the company's ADRs to Hold, from Buy, and lowered the price target to $145 from $234, implying 21% upside.

Shares have fallen 22% since Thursday's earnings miss.

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